Metro Brands Limited Reaffirms Credit Ratings on April 2, 2026
Metro Brands Limited (MBL) has reaffirmed its credit ratings, according to a press release dated April 2, 2026. Care Edge Ratings has reaffirmed the 'AA' rating for Long-term Bank facilities and 'A1+' for short-term facilities, with a stable outlook.The instrument-wise rating details are as follows:
| Sr. No | Facilities/Instruments | Amount (₹ in Crore) | Rating |
|---|---|---|---|
| 1 | Long-term / Short-term Bank Facilities | 56.00 (enhanced from 46.00) | CARE AA; Stable/CARE A1+ (Double A; Outlook: Stable/A One Plus) |
| Total Bank Facilities | 56.00 (Rupees Fifty-Six crore only) |
The reaffirmation is driven by the extensive experience of promoters, a long-standing presence in the footwear industry, a well-established market position, and a broad distribution network.
In fiscal year 2025 (April 1 to March 31), MBL’s total operating income increased by 6.40% to ₹2,509.65 crore. Growth continued in the nine months ending December 31, 2025, with a total operating income of ₹2,090.62 crore, representing a 12.12% increase compared to the corresponding period of the previous year. The company has added 284 stores between fiscal year 2023 and fiscal year 2025, with a further net addition of 82 stores in the nine months ending December 31, 2025.
MBL's partnerships include Crocs, FitFlop, FILA, Foot Locker, New Era, Clarks and HEYDUDE. The company launched MetroActiv, a multi-brand retail format focused on the sports and performance segment.
Rating Sensitivities
Positive factors:
- Improvement in total annual sales above ₹3,000 crore on a sustained basis.
- Improvement in PBILDT margin while maintaining return on capital employed (ROCE) above 25% on a sustained basis.
Negative factors:
- Decrease in PBILDT margins below 18% on a sustained basis.
- Debt-funded acquisition leading to deterioration in the financial risk profile.
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